Mutual Fights Time’s $6.9M Settlement and Defense Costs

Mutual Insurance Co. is asking a New York federal judge to throw out a suit brought by Time Inc. demanding $6.9 million in indemnification of settlement and defense costs for class actions accusing the magazine company of deceptive marketing. Mutual claims that Time’s “intentional” unfair business practice is not covered by its policy.

Mutual has said that the global media liability policy it sold to Time only covers claims for “negligence.” However, magazine subscribers have alleged Time “knowingly” and “willfully” engaged in false advertising for automatic payment renewals, meaning Time’s practice was not “negligent” and that Mutual has no obligation to cover its costs.

Time and Synapse are represented by Tim Burns and Jesse Bair of Burns Bowen Bair LLP, as well as Jalina Joy Hudson of Perkins Coie LLP.

Read more at Law360.